SBS Bank lifts interim profit 11% to $7m

Southland-based SBS Bank boosted its tax-paid half-year profit 11% to $7.0 million at September 30, thanks to lower credit losses and “improved valuations on financial instruments.”

The operating surplus for the first six months was $9.0 million, which is in line with the $9.3 million reported for the same period last year, managing director Ross Smith says.

Customer deposits increased $14 million to a total of $2.24 billion. SBS’ tier one capital has increased $14.3 million to $183 million and the total capital ratio sits at 13.7%, which Mr Smith says is one of the highest for a registered bank in New Zealand.

He describes the result as extremely satisfying considering the demanding financial environment experienced by banking and financial institutions over the past two years.

“It is pleasing to be able to see our commitment to prudent business management at SBS Bank is continuing to enable us to further strengthen our position as New Zealand’s only customer-owned community bank,” he says.

“Our objective in this financial year is to further consolidate our position as a mutual, by strengthening our balance sheet, safeguarding the business and looking after our customers and our communities.”

On October 1, SBS merged with the Hastings Building Society, adding its two branches to the SBS national network.